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Quantchabot has detected a promising Bull Call Spread trade opportunity for LKQ (LKQ) for the 15-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
LKQ was recently trading at $54.57 and has an implied volatility of 27.61% for this period. Based on an analysis of the options available for LKQ expiring on 15-Oct-2021, there is a 34.16% likelihood that the underlying will close within the analyzed range of $54.57-$55.49 at expiration. In this scenario, the average linear return for the trade would be 16.17%.
52 week high: LKQ recently reached a new 52-week high at $54.58. LKQ had traded in the range $29.60-$53.17 over the past year.
Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if LKQ maintains its current direction and does not revert back to pricing on the bearish side of $54.57 on 15-Oct-2021. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bullish strategy, the trade would be profitable if LKQ closes at or above $54.55 on 15-Oct-2021. Based on our risk-neutral analysis, there is a 50.89% likelihood of this return.
Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.
To analyze this trade in depth, please visit the Quantcha Options Search Engine.